Twitter Stock Analysis (NYSE:TWTR)

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$19.61 $0.36 (1.8%) TWTR stock closing price Jul 26, 2017 (Closing)
Watch Robo Advisor Video of TWTR Stock Analysis
Updated on : Jul 26, 2017
previous close
TWTR 19.6 (0%)
NASDAQ 6422.8 (0%)
Closing Price On: Jul 26, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
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PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
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Twitter Analysis Video

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Our Twitter analysis throws up more reasons to sell than buy the stock, because it has historically underperformed on nearly every financial or fundamental parameter based on which companies are normally evaluated. We have analyzed twitter on various parameters like Twitter revenue growth, profits, and valuation based on PE (See: Twitter PE ratio chart), PS ratios, Twitter's assets and many more. Twitter stock analysis compares it with fast growing Internet industry peers, but still finds it to be expensive and risky buy right now.

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Twitter Inc Stock Rating (2.4/5)

Should you buy TWTR stock?

  • The company has a good Free Cash Flow (FCF) margin of 36.2%.

Should you sell TWTR stock?

  • Twitter registered a negative operating margin of -14% (average) over the Trailing Twelve Months (TTM).
  • Over the last 12 months, Twitter had an average Net loss of -17.7%.
  • With a debt/equity ratio of  0.37, Twitter is highly leveraged in comparison to Computer and Technology peers.
  • The company does not have profits. Hence the PE ratio is meaningless for TWTR stock.
  • The company is trading at a price to sales multiple of 5.7, which is overvalued in comparison to the Internet Software industry average multiple of 2.8.
  • Twitter's negative ROIC of -8.7% indicates operational inefficiency.
  • Twitter has a negative ROE (Return On Equity) of -9.6%, indicating the company is not profitable.

Comments on this video and Twitter stock

arnulacroix22 on Twitter stock analysis ($48.01)
Watch Twitter, Inc. (TWTR) Stock @ current levels. The company registered nearly two-fold increase in revenue on its financial results and above analysts' consensus earnings estimates. Check this out:
1 reply
nagarkar.vikram on Twitter stock analysis ($40.47)
Our Facebook Twitter Comparison Video
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neena@amigobulls on Twitter stock analysis ($31.96)
Jim Cramer says Twitter is no longer a good short. Stops short of calling it a buy
We quote "No, don't buy them for takeovers. The valuations are still too high. But at this pace, that won't be for long -- and you don't want to be caught shorting a company that could turn out to be valuable to a bigger company that wants to own a growing space."

We disagree, it is overvalued. We remain bearish.
2 reply
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virendra on Twitter stock analysis ($39.56)
Improved Monetization can't compensate for lackluster user growth and engagement. Not for long! Long term risks overshadowed a solid Q1. Result? Stock tanked 10% post earnings.
tittat1 on Twitter stock analysis ($51.41)
Not only is it a simple architecture, but it continues to be used globally on a wide scale. It needs little in the way of alteration. Moreover, persons in any language can learn it easily and in the 3rd world this is King.
2 2 reply
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lisajohn on Twitter stock analysis ($46.32)
Just because its easy to use does not justify its valuation or current price! People often confuse what they like with whether its a value stock..
tittat1 on Twitter stock analysis ($51.41)
Twitter is a great buy, it is still a simple architecture that continues to work time after time, low maintenance even in the face of many more visual competitors and makes it simple enough for anyone to use.
1 2 reply
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viren@amigobulls on Twitter stock analysis ($51.92)
Andre Waldron argues that Twitter's user base is going to be a problem for the company. Here is the link to seeking alpha article
3 1 reply
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topstocker on Twitter stock analysis ($53.88)
Sure Big data is an opportunity ! but not big enough to wait 40 years to earn back your investment in sales/revenues! Lets not even talk about profits !
2 reply
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oracleofwallstreet009 on Twitter stock analysis ($54.83)
At a P/S of 45x Sales and With profits nowhere in the picture, Even growth at 100% for the next five years is nearly priced in at the current prices.
6 2 reply
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thinkstocktalk on Twitter stock analysis ($54.83)
Theres a huge opportunity in Big data dont you think? I dont think the potential has been understood!
6 1

Twitter has been a momentum stock as can be seen from Twitter stock price history, driven more by market sentiments and expectations of future growth and buyouts, rather than financial strength. Our Twitter share analysis indicates a very risky proposition with very high price to sales ratio and non-existent price to earnings ratio, as Twitter is yet to report any net profits. Our stock analysts find twitter stock to be a very risky proposition.